Teenage Investors Stock Portfiolio Worth More Than $50,000 Damon Williams, 14 years of age, may be a millionaire in the making through his stock market investing. He already has an investment portfolio worth over $50,000 (USD). Heres a young investor who learned the value of money, how to handle that monkey and invest it in the stock market. His mom taught him what he knows and the rest he learned on his own. This teen investor knows how to research stocks and companies online to find out which companies will make the best investment. Damon knows the difference between dividend yields, P/E ratios and how a companies growth rate may affect its future stock value. When Explaining the Stock Market to Kids, Start With the Basics: Both investing stocks and how the stock market works can seem very complex to a young person who has no idea of such things. When I teach kids about complex subjects, I tell my students its like eating an elephant - you have to do it one bite at a time. The same is true when it comes to explaining the stock market to kids. Here is a simple, basic explanation of how stocks and the stock market function: • The stock market is a place where people can buy and sell pieces of a company These are known as shares or stocks • These stocks are pieces of paper that have a value, sort of like money • A stock shows that you own a small piece of that company • Companies can issue millions of these stocks to help them raise money to grow • The value of each stock changes (up or down) over time depending on what people think about a company or how well that company performs • Investors can buy as many of these stocks as they can afford • When a company makes money and the value of the company goes up, the value of that stock goes up, too. When the value of the company goes down, so does its stock • Companies that issue stocks have brokers who trade, buy and sell them at a stock exchange like the New York Stock Exchange (NYSE) • The Dow Jones Industrial Average (DJIA) keeps track of the stock market, whether it is going up or down in value. Explaining What Stocks Are All companies need more money to grow and do more business. Sometimes, a company needs more many than it has in the bank to make the business bigger, hire more workers and make more things. To get the extra money needed to grow, companies offer tiny pieces of ownership in their company. Those tiny pieces or shares of a company are known as stocks. The value of a share or stock may go up or down depending upon many different factors. Explaining Why People Buy Stocks Regular people can buy a piece or share of the company when they buy stocks in that company. These people want to buy the stock for a little money in hopes that the money from the stock will help the company grow bigger. When the company grows bigger, the value of that stock also grows and becomes worth more money.
Posted on: Sun, 28 Dec 2014 20:26:16 +0000
Trending Topics
Recently Viewed Topics
© 2015